Do you remember green ketchup? Several years back, Heinz changed their signature ketchup formula to turn it from red to green – and the response was astounding. 10 Million bottles for sales of roughly $23 million. Factories churned 24 hours a day 7 days a week attempting to keep up with the demand. The experiment proceeded over the course of just under a year – and highlighted a dramatic psychological influence on people – color.
The color of things – whether the atmosphere you present to shoppers, the signage outside, the colors of products or the color of uniform you assign to your staff members – is all relevant to your bottom line.
A staggering 52% of shoppers have reported that if they don’t like the aesthetics of a store, they will not return. More than 1 in 2. And within 90 seconds of actually entering your store, most consumers will have already made a judgement on the quality of your merchandise, based on the atmosphere and color pallet of your store alone! 62-90% of consumers report making a decision simply based on the color of the product and the associated advertising peripherals around it.
Is it a surprise, then, that retailers should pay attention to the psychology of color and how it affects their staff AND customers? That everything from the walls to the floors to the signage outside portray quality to a consumer (but not necessarily every consumer – different genders, age groups and target demographics appreciate different color pallets)? But further, that effective promotional strategies include color right at the shelf edge and the signage that announces the promotion to the world?
Retailers for years have been using various colors to boldly pronounce a product on sale. Whether it is a limited time offering, a weekend sale or a manufacturer rebate – you must get the message out. And through trial and testing – retailers have discovered the two colors that work the best. Red and Yellow.
Perhaps the most striking color – red- is frequently used for immediate sale items. The color creates an adrenaline effect and prompts immediate action. According to a study published in Emotion journal, the author found quicker responses and more importantly, more forceful responses when red is displayed next to a product. Red is naturally a cue for danger – and thus, sale prices that will eventually expire elicit an immediate response when proposed in red.
Yellow on the other hand is less urgent – but still appealing. It speaks to announcements – reduction of a normal price, but not quite a sale – or new items. Yellow also invokes feelings of energy and tend to increase your appetite – which speaks directly to the fact why McDonalds chose those beautiful golden arches outside of every fast food restaurant!
Needless to say, it is important for retailers to consider the impacts of color on the atmosphere of their store – and how it will impact their target market. Further, the use of red and yellow in electronic shelf labels (or digital price tags) at the shelf edge can lead to increased sales through some sly psychological factors that your bottom line will appreciate.
All of our electronic shelf labels (with the exception of our tags destined for the freezer) feature the ability to display white / black and red OR yellow. And with the ability to switch the color on or off in an instant – retailers can pursue dynamic pricing and flash sales with ease.